Safeway Reports Flat Second Quarter
PLEASANTON, Calif. -- Safeway, Inc. here said its sales for the second quarter, which ended June 14, were flat, while same-store sales declined 0.5 percent. Excluding the effect of fuel sales, comparable store sales declined 1.7 percent, and identical store sales declined 2.2 percent, the company said this morning.
Sales were impacted by continued softness in the economy. Total sales increased to $7.7 billion from $7.5 billion, primarily due to new store openings and increased fuel sales.
Gross profit decreased 144 basis points to 30.17 percent of sales in the second quarter from a gross profit of 31.61 percent in the second quarter of 2002, primarily due to higher shrink, higher fuel sales, transitional marketing issues, and selected investments in pricing.
Income from continuing operations was $199.6 million, or 45 cents per share, compared with $305 million, or 62 cents per share, for the same period in 2002.
During the first 24 weeks of 2003, Safeway invested $370 million in cash capital expenditures, opened 22 new stores and closed 15 stores. For the year, the company expects to spend $1.1 billion in cash capital expenditures, while opening 35 to 40 new stores and completing approximately 100 remodels.
Sales were impacted by continued softness in the economy. Total sales increased to $7.7 billion from $7.5 billion, primarily due to new store openings and increased fuel sales.
Gross profit decreased 144 basis points to 30.17 percent of sales in the second quarter from a gross profit of 31.61 percent in the second quarter of 2002, primarily due to higher shrink, higher fuel sales, transitional marketing issues, and selected investments in pricing.
Income from continuing operations was $199.6 million, or 45 cents per share, compared with $305 million, or 62 cents per share, for the same period in 2002.
During the first 24 weeks of 2003, Safeway invested $370 million in cash capital expenditures, opened 22 new stores and closed 15 stores. For the year, the company expects to spend $1.1 billion in cash capital expenditures, while opening 35 to 40 new stores and completing approximately 100 remodels.
